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From what I've read, DC can be installed just about anywhere and in just about any orientation (vertical or horizonal). This would include underground, above ground, or indoors such as a basement. The primary limitation is that the device must be redaily accessable for testing.

From what I have read (USC 9th edition, DHS title 17) a DC is not approved for a sprinkler system. By the way no backflow should be installed below ground. The test cocks are a potential cross connection.